Why options vs outright positions?

Discussion in 'Options' started by Reaver, Mar 23, 2008.

  1. Their seminars are a good deal. $200 bucks or so is hard to beat in this industry.
     
    #21     Mar 27, 2008
  2. So far I have found that ToS Papermoney with its analysis tools and a good volatility scanner has been enough for me to get a grip.

    There's a lot more to learn in this options game I know...but it's starting to click.

    This is a lot different than trading outrights like I've been doing the past couple years.
     
    #22     Mar 27, 2008
  3. mokwit

    mokwit

    Strictly, you are right, more than 100% is possible if leverage is used which it is.

    In practical terms though you can make e.g. 200% on a small move in an index with index ETF options but to do that with 50% margined index ETF the index would have to go to zero.
     
    #23     Mar 27, 2008